Bank of Scotland Integrated Finance has backed the GBP46m buy-out of leading commercial property consultancy Lambert Smith Hampton Ltd.
Bank of Scotland Integrated Finance has backed the GBP46m buy-out of leading commercial property consultancy Lambert Smith Hampton Ltd. The transaction sees the business return to private ownership after eight years as part of the LSE listed multi-disciplinary group WS Atkins plc. The management team, led by Chief Executive Mark Rigby and advised by mid market specialist Baker Tilly, secured a significant majority stake in the business.
With over 900 employees and 30 offices across the UK and Ireland, LSH offers a full national capability to both the private and public sectors. From building consultancy, valuations and property management services to acquisitions and disposals LSH provides a wide range of commercial property services to a number of blue chip organisations including the BBC, BT, Tesco, Carphone Warehouse and Network Rail.
The deal was funded by Bank of Scotland’s Integrated Finance team which specialises in mid market deals between GBP20m and GBP500m. The funding comprised a mixture of senior debt, mezzanine debt, loan stock and equity. The transaction represents a further high profile brand for the IF team, which already boasts TM Lewin and Denby as part of their portfolio.
‘The MBO of LSH is another high profile transaction for Integrated Finance and we are extremely pleased to be investing in the business,’ says Andy Powell, Director of Integrated Finance at Bank of Scotland. ‘LSH has incredible national strength and depth in its market and we look forward to working with the management team to grow the firm.’
The transaction was announced on the day of the firm’s 2007 year end results and saw operating profits before tax up from GBP4.9 million to GBP9.3 million (a 90 per cent increase) based on turnover of GBP81.8 million. Margin also significantly improved from 6.8 per cent in 2006 to 11.0 per cent in 2007. In addition to its strong financial performance, LSH was also awarded a number of leading industry titles including ‘UK’s Most Active Agent’ and ‘Industrial Agency Team of the Year’.
Having taken the business private the management team are now looking to strengthen its position at the forefront of the market.
‘LSH is a dynamic and successful business which is performing strongly and delivering significant growth,’ says Rigby. ‘We have completed this deal to give LSH control and ownership of its own future, and to make that future an even better one for our staff and clients.’
The Baker Tilly team, led by Rob Donaldson, Head of M&A and Private Equity, advised management throughout the process.
‘I’m delighted we’ve helped Mark and his team take control of the business,’ says Donaldson. ‘I’m confident that in their hands the business will thrive and go on to achieve great things. We look forward to being part of their story going forward.’
Berwin Leighton Paisner provided legal advice for the management team; Travers Smith provided legal advice for Bank of Scotland and Mayer Brown Rowe and Maw provided legal advice for the Vendor.
